Tuesday, October 30, 2018

Why are bond Prices falling?

So I’ve been in the stock market for about a year mostly trading equities (no options). I’m a longer term, fundamentals investment type. My quest is about bond prices. Excuse the ignorance, I never payed much attention to bonds.

With the sell off of equities and the increase in interest rates I would have thought that bond prices would have increased. I have a small portion of my portfolio in bonds (~15%). However with the sell off in the stock market this position (Fidelity Total Bond Fund - FTBFX) hasn’t done much. It hasn’t gone down much but it hasn’t increased much either. I would have thought that as the sell off continues in equities people would be moving their money to safer places (ie. bonds) and that my bond fund would have been worth more.

What am I missing here?



Submitted October 30, 2018 at 12:57PM by Demonstratepatience https://ift.tt/2Q80aUU

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